US Real Estate (National) 2026 — Free Guide

For over 30 years, federal law required separate disclosure forms under TILA and RESPA that were overlapping and confusing. The Dodd-Frank Act directed the CFPB to integrate these mortgage disclosures into two combined forms: the Loan Estimate and the Closing Disclosure. The CFPB published the final TILA-RESPA Final Rule (commonly called TRID) on December 31, 2013.

• ✓Under federal law, the CFPB (Bureau of Consumer Financial Protection) integrated TILA and RESPA disclosures under authority of the Dodd-Frank Act, Section 1032(f)
• ✓The Good Faith Estimate (GFE) and initial Truth-in-Lending disclosure were combined into the Loan Estimate
• ✓The HUD-1 and final Truth-in-Lending disclosure were combined into the Closing Disclosure
• ✓The integrated rule is administered and enforced by the CFPB

The two TRID forms have distinct delivery timelines. The Loan Estimate helps consumers understand key features, costs, and risks of the loan and must be delivered early in the process. The Closing Disclosure helps consumers understand all final costs of the transaction and must be delivered before consummation.

• ✓Under federal law (TILA/RESPA, CFPB), the Loan Estimate must be provided no later than the third business day after the consumer submits a loan application
• ✓Under federal law, the Closing Disclosure must be provided to the consumer at least three business days before consummation of the loan
• ✓Consummation is when the consumer becomes contractually obligated on the loan, which is not necessarily the same as closing or settlement

TRID applies to most closed-end consumer mortgage loans. Certain loan types are specifically excluded from coverage, and the exam frequently tests which loans fall outside the rule.

• ✓Under federal law (CFPB), TRID applies to most closed-end consumer credit transactions secured by real property
• ✓TRID does NOT apply to home equity lines of credit (HELOCs), reverse mortgages, or mortgages secured by a mobile home or a dwelling not attached to real property
• ✓The 2017 amendments extended coverage to closed-end loans secured by cooperative units regardless of whether state law classifies them as real property
• ✓The rule generally does not apply to loans made by persons who are not 'creditors' under TILA

Under federal law (Regulation Z § 1026.19(e)(2)), the TRID Rule restricts certain creditor activity before the consumer receives the Loan Estimate and indicates intent to proceed. These consumer protections are frequently tested.

• ✓A creditor may not impose fees on a consumer (other than a bona fide credit report fee) before the consumer receives the Loan Estimate and indicates intent to proceed
• ✓A creditor may not require submission of documents verifying information before providing the Loan Estimate
• ✓A consumer may indicate intent to proceed in any manner the consumer chooses, unless the creditor requires a particular manner of communication

For more than 30 years, federal law required two separate disclosure forms under two federal statutes: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). Because these forms overlapped and used inconsistent language, the Dodd-Frank Act directed the Consumer Financial Protection Bureau (CFPB) to integrate them. The result is the TILA-RESPA Integrated Disclosure (TRID) rule, which created two new forms: the Loan Estimate and the Closing Disclosure.

• ✓Under federal law, TRID integrates disclosures previously required separately by TILA and RESPA
• ✓The CFPB (a federal agency) issued the TRID rule under authority of the Dodd-Frank Act
• ✓TRID replaced the older GFE, initial TIL, and HUD-1 disclosures with the Loan Estimate and Closing Disclosure

The Loan Estimate and Closing Disclosure must be used for most closed-end consumer mortgages. Certain loans remain exempt and continue to use the older TILA/RESPA forms: home equity lines of credit (HELOCs), reverse mortgages, and mortgages secured by a mobile home or by a dwelling not attached to real property (land). The rule also does not apply to creditors making five or fewer mortgages per year.

• ✓Under federal law, TRID applies to most closed-end consumer mortgage loans
• ✓HELOCs, reverse mortgages, and mortgages on a mobile home/dwelling not attached to land are exempt from TRID
• ✓The rule does not apply to persons who make five or fewer mortgages per year (not 'creditors')

Under federal law, creditors must retain evidence of compliance with the TILA-RESPA Rule for specified periods. The Closing Disclosure has its own retention requirement, and obligations continue even when loans are transferred or sold.

• ✓Under federal law (Regulation Z, § 1026.25), creditors must retain records evidencing compliance with the disclosure requirements
• ✓The Closing Disclosure and related documents must be retained for five years after consummation
• ✓Record retention obligations survive the transfer or sale of the loan

Under federal law, the TRID Rule generally took effect October 3, 2015. The Integrated Disclosures must be provided for applications received on or after that date; earlier applications use the older GFE, HUD-1, and TIL forms.

• ✓The Integrated Disclosures apply to applications received on or after October 3, 2015
• ✓For applications received before October 3, 2015, creditors must use the GFE, HUD-1, and Truth-in-Lending forms
• ✓A creditor cannot use the Integrated Disclosures for applications received before October 3, 2015

Under federal law, certain loans that are subject to TILA but not RESPA are still covered by TRID's integrated disclosure requirements. This distinguishes coverage from the older RESPA-only rules.

• ✓Construction-only loans are subject to the TRID integrated disclosure requirements
• ✓Loans secured by vacant land or by 25 or more acres are subject to the TRID requirements
• ✓TRID generally does not apply to loans made by a person or entity not considered a creditor under Regulation Z

When a changed circumstance occurs after the Loan Estimate has been provided, the creditor may issue a revised Loan Estimate. Under federal law (Regulation Z § 1026.19(e)(4)), the creditor must deliver or mail the revised Loan Estimate within three business days of receiving information sufficient to establish the changed circumstance, and the consumer must receive it no later than four business days before consummation. A revised Loan Estimate may not be provided on or after the date the Closing Disclosure is provided.

• ✓A revised Loan Estimate must be delivered or mailed within 3 business days of learning of the changed circumstance
• ✓The consumer must receive the revised Loan Estimate no later than 4 business days before consummation
• ✓A revised Loan Estimate cannot be issued on or after the date the Closing Disclosure is provided

Under federal law (Regulation Z §§ 1026.19(e) and 1026.37), the creditor must provide the consumer a good-faith Loan Estimate for most closed-end transactions secured by real property (except reverse mortgages). It replaces the GFE and initial TIL.

• ✓The Loan Estimate must generally be provided within three business days of receiving the consumer's application
• ✓The Loan Estimate must contain a good-faith estimate of credit costs and transaction terms, based on the best information reasonably available if exact information is unknown
• ✓Either the creditor or a mortgage broker who receives the application may provide the Loan Estimate

Under federal law (TILA/RESPA, enforced by the CFPB under the TRID rule), the creditor must deliver or place in the mail the Loan Estimate no later than the third business day after receiving the consumer's application. It must also be delivered or mailed no later than the seventh business day before consummation of the transaction.

• ✓Loan Estimate must be delivered or mailed within 3 business days of application
• ✓Loan Estimate must be delivered or mailed no later than 7 business days before consummation
• ✓The 7-business-day waiting period applies to the initial Loan Estimate but not to revised Loan Estimates

Under federal law (TILA/RESPA), the obligation to provide a Loan Estimate is triggered when the consumer submits the six pieces of information constituting an 'application': (1) consumer's name, (2) income, (3) Social Security number for a credit report, (4) property address, (5) estimate of property value, and (6) mortgage loan amount sought.

• ✓An application consists of six pieces: name, income, SSN, property address, estimated property value, and loan amount sought
• ✓The CFPB removed the old 'catch-all' seventh element from RESPA's prior definition
• ✓Information is not 'submitted' merely because it exists in the creditor's files or system

Under federal law (TILA/RESPA, CFPB), a consumer indicates intent to proceed by communicating in any manner (oral, written, email, or signing a form) after the Loan Estimate is delivered, unless the creditor requires a specific manner. Silence is never an indication of intent to proceed, and the creditor must document the communication.

• ✓Intent to proceed can be communicated in any manner after delivery of the Loan Estimate, unless a specific manner is required
• ✓A consumer's silence is not indicative of intent to proceed
• ✓The creditor must document the intent-to-proceed communication for record retention under § 1026.25

Under federal law (RESPA Section 5, 12 U.S.C. 2604, and Regulation Z § 1026.19(g), enforced by the CFPB), creditors must provide the special information booklet ('Your Home Loan Toolkit: A Step-by-Step Guide') to consumers who apply for a consumer credit transaction secured by real property or a cooperative unit. The booklet helps consumers understand real estate transactions and settlement costs. It must be delivered or placed in the mail no later than three business days after the creditor receives the consumer's loan application.

• ✓Special information booklet must be delivered or mailed within 3 business days of receiving the loan application (§ 1026.19(g)(1)(i))
• ✓Required for consumer credit transactions secured by real property or a cooperative unit
• ✓The current booklet is 'Your Home Loan Toolkit: A Step-by-Step Guide,' which replaced HUD's Settlement Cost Booklet

The Loan Terms table on page 1 discloses the Loan Amount, the initial Interest Rate, the initial Monthly Principal & Interest amount, any adjustments to these amounts after consummation, whether the loan includes a Prepayment Penalty, and whether the loan includes a Balloon Payment. Under 'Can this amount increase after closing?', the creditor discloses Yes or No for each item, with details if Yes.

• ✓The Loan Terms table discloses Loan Amount, Interest Rate, and Monthly Principal & Interest
• ✓It also discloses whether the loan has a Prepayment Penalty or a Balloon Payment
• ✓Each item shows whether the amount can increase after closing (Yes/No)

A Prepayment Penalty is a charge imposed for paying all or part of the loan's principal before it is due; it does not include a waived third-party charge the creditor imposes if the consumer prepays the entire principal within 36 months of closing. A Balloon Payment is a payment that is more than two times a regular periodic payment. When either feature is present, the disclosure states 'Yes' and gives the maximum amount and the relevant date/period.

• ✓A Prepayment Penalty is a charge for paying off principal early (before it is due)
• ✓A Balloon Payment is a payment more than two times a regular periodic payment
• ✓If present, the disclosure states the maximum amount and the applicable date or period

The Loan Estimate's Projected Payments table shows estimates of the periodic payments the consumer will make over the life of the loan. Under federal law (TILA/RESPA, implemented by the CFPB under Regulation Z), creditors must disclose specific periodic payment components so borrowers can understand how payments may change.

• ✓The Projected Payments table must disclose Principal & Interest, Mortgage Insurance, Estimated Escrow, and the Estimated Total Monthly Payment
• ✓Estimated Taxes, Insurance & Assessments must be shown even if NOT paid with escrow funds
• ✓The table indicates whether taxes, insurance, and assessments will be paid from the consumer's escrow account (§ 1026.37(c)(2))

Under federal law (TILA/RESPA, CFPB), page 2 of the Loan Estimate discloses up to four categories: a good-faith itemization of Loan Costs and Other Costs, a Calculating Cash to Close table, an Adjustable Payment (AP) Table, and an Adjustable Interest Rate (AIR) Table.

• ✓Loan Costs are paid to the creditor and third-party providers the creditor requires during loan origination (§ 1026.37(f))
• ✓Other Costs include taxes, government recording fees, and other real estate closing payments (§ 1026.37(g))
• ✓The AP Table applies to adjustable monthly payment loans; the AIR Table applies to adjustable interest rate loans
• ✓Loan Costs and Other Costs amounts are rounded to the nearest whole dollar

Loan Costs on the Loan Estimate are disclosed under three subtotaled subheadings, and their sum is the Total Loan Costs. This organization helps borrowers see which fees are shoppable.

• ✓The three subheadings are Origination Charges, Services You Cannot Shop For, and Services You Can Shop For
• ✓Total Loan Costs = sum of the three subtotals (§ 1026.37(f)(4))
• ✓Items must be disclosed using terminology that clearly describes the service and, for services, in alphabetical order

On the Loan Estimate, Total Closing Costs is the sum of Total Loan Costs, Total Other Costs, and Lender Credits. Under federal law (TILA/RESPA, CFPB), this figure summarizes what the borrower will pay in connection with the loan.

• ✓Total Closing Costs = Total Loan Costs + Total Other Costs + Lender Credits (§ 1026.37(g)(6))
• ✓Lender Credits are disclosed as a negative number because they reduce the borrower's costs

Under federal law (TILA/RESPA, CFPB), the Loan Estimate's Calculating Cash to Close table shows how the Estimated Cash to Close is derived. Estimated Cash to Close is the sum of the seven other amounts disclosed in the table: Total Closing Costs, Closing Costs Financed, Down Payment/Funds from Borrower, Deposit, Funds for Borrower, Seller Credits, and Adjustments and Other Credits.

• ✓Total Closing Costs in this table is disclosed as a positive number and equals the Other Costs table total (§ 1026.37(h)(1)(i))
• ✓Estimated Cash to Close is the sum of the seven other amounts in the table (§ 1026.37(h)(1)(viii))

Under federal law (TILA/RESPA, CFPB), the Loan Estimate page 3 Comparisons table helps consumers compare loans. It discloses In 5 Years (total paid and principal paid through the 60th month), the Annual Percentage Rate (APR), and the Total Interest Percentage (TIP). The APR expresses costs over the loan term as a rate and is NOT the interest rate.

• ✓APR expresses costs over the loan term as a rate and is not the same as the interest rate (§ 1026.37(l)(2))
• ✓TIP is the total interest paid over the loan term expressed as a percentage of the loan amount (§ 1026.37(l)(3))

Under federal law (TILA/RESPA, CFPB), the consumer is not required to sign the Loan Estimate. A creditor may add a signature line to confirm receipt only, using the exact model-form language. Signing merely confirms receipt and does not obligate the consumer to accept the loan.

• ✓The consumer is not required to sign the Loan Estimate (§ 1026.37(n)(1))
• ✓If no Confirm Receipt table is used, a Loan Acceptance statement must appear stating the consumer need not accept the loan because they received the form or signed an application (§ 1026.37(n)(2))

Under federal law, the CFPB provides standard and model Loan Estimate forms. Whether use is mandatory depends on whether the loan is a federally related mortgage loan.

• ✓For federally related mortgage loans (most mortgages), the Loan Estimate is a standard form that creditors must use with all elements (font sizes, bolding, shading, underscoring)
• ✓For loans not federally related, the form is a model form that need not be used exactly but disclosures must be substantially similar in content and format
• ✓Use of an appropriate Loan Estimate sample form provides a safe harbor if properly completed with accurate content

Under federal law (Regulation Z §§ 1026.37(f) and (g)), page 2 of the Loan Estimate itemizes charges in two general categories. Understanding the distinction is testable.

• ✓Loan Costs are paid by the consumer to the creditor and third-party providers of services the creditor requires, generally during loan origination
• ✓Other Costs include taxes, governmental recording fees, and certain other payments involved in the real estate closing process
• ✓The designation 'N/A' may not be used on the Loan Estimate; inapplicable disclosures are omitted or left blank

Under federal law (TILA/RESPA), a consumer may modify or waive the seven-business-day waiting period if there is a bona fide personal financial emergency (e.g., imminent foreclosure sale). The consumer must provide a dated, written statement describing the emergency and signed by all consumers primarily liable. The creditor may not provide a pre-printed waiver form.

• ✓Waiver requires a bona fide personal financial emergency
• ✓Consumer must provide a dated written statement describing the emergency, signed by all consumers primarily liable
• ✓Creditor may NOT provide a pre-printed waiver form

Under federal law (TILA/RESPA), a mortgage broker who receives a consumer's application may provide the Loan Estimate on the creditor's behalf, satisfying the creditor's obligation. However, the creditor remains legally responsible for any errors or defects, and record retention requirements apply.

• ✓A mortgage broker may provide the Loan Estimate on the creditor's behalf
• ✓The creditor is legally responsible for any errors or defects even if the broker delivers
• ✓Broker must comply with the 3-year record retention requirement

Under federal law (TILA/RESPA), if the Loan Estimate is not delivered in person, the consumer is considered to have received it three business days after it is delivered or placed in the mail. The Loan Estimate may be delivered in person, by mail, or by electronic delivery (subject to E-SIGN Act consent requirements).

• ✓Consumer is presumed to receive the Loan Estimate 3 business days after mailing if not delivered in person
• ✓Delivery may be in person, by mail, or electronically
• ✓Electronic delivery must comply with E-SIGN Act consumer consent provisions

Under federal law (TILA/RESPA), a creditor may not condition providing the Loan Estimate on the consumer submitting documents verifying information. The creditor may ask for information orally but cannot require supporting documentation (e.g., purchase agreement, bank statements) before issuing the Loan Estimate.

• ✓Creditor may not require verifying documents before providing the Loan Estimate
• ✓Creditor cannot represent that it will not provide a Loan Estimate without verifying documentation
• ✓An online system may not reject applications that contain the six elements just because preferred additional info is missing

Under federal law (TILA/RESPA), if a consumer provides only five of the six pieces (e.g., no property address), no Loan Estimate is required and a pre-approval may be issued. Once all six are provided, a Loan Estimate is required. If the consumer withdraws or the application cannot be approved within 3 business days, no Loan Estimate is required — but one is required if the transaction later consummates on the original terms.

• ✓Providing only 5 of 6 pieces does not trigger the Loan Estimate obligation
• ✓All six pieces trigger the Loan Estimate even for pre-approval/pre-qualification requests
• ✓If the consumer withdraws within 3 business days, no Loan Estimate is required, but it must be provided if consummated on original terms

Under federal law (TILA/RESPA), for delivering the Loan Estimate, a 'business day' is any day the creditor's offices are open to the public for carrying out substantially all of its business functions. A different, more precise definition (all calendar days except Sundays and federal holidays) applies for counting days for Closing Disclosure receipt.

• ✓For Loan Estimate delivery, business day = day creditor's offices are open for substantially all business functions
• ✓For the Closing Disclosure, business day = all calendar days except Sundays and legal federal holidays
• ✓The two business-day definitions must not be confused

Under federal law (TILA/RESPA, CFPB), creditors may give consumers estimates before the Loan Estimate, but any written estimate of consumer-specific terms/costs must display a required disclaimer at the top of the first page: 'Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.' It must be at least 12-point font and cannot resemble the Loan Estimate or Closing Disclosure.

• ✓A written pre-Loan-Estimate estimate must state the required disclaimer at the top of the first page
• ✓The disclaimer must be no smaller than 12-point font
• ✓The estimate may not have headings, content, or format substantially similar to the Loan Estimate or Closing Disclosure (model form H-26)

Under federal law (Regulation Z, CFPB), the special information booklet is not required in certain transactions. For a HELOC subject to § 1026.40, the creditor or mortgage broker may instead provide the 'When Your Home is On the Line' brochure. The booklet is not required for transactions that are not for the purpose of purchasing a one-to-four family residential property, such as refinancings, closed-end subordinate-lien loans, or reverse mortgages.

• ✓For HELOCs subject to § 1026.40, the 'When Your Home is On the Line' brochure may be provided instead (§ 1026.19(g)(1)(ii))
• ✓Not required for refinancing, closed-end subordinate-lien loans, or reverse mortgages (§ 1026.19(g)(1)(iii))
• ✓Booklet requirement applies to purchases of one-to-four family residential property

Under federal law (Regulation Z, CFPB), when two or more persons apply together for a loan, the creditor may provide a single copy of the special information booklet to just one of them. If the consumer uses a mortgage broker, the mortgage broker must provide the booklet and the creditor need not do so.

• ✓Only one booklet must be provided when multiple persons apply jointly (Comment 19(g)(1)-2)
• ✓When a mortgage broker is used, the broker must provide the booklet and the creditor is relieved of the duty (§ 1026.19(g)(1)(i))

Under federal law (Regulation Z, CFPB), making the special information booklet available on a creditor's website does NOT satisfy the delivery requirement. The creditor must actually deliver or place the booklet in the mail no later than three business days after receiving the consumer's application.

• ✓Posting the booklet on a website does not satisfy the TILA-RESPA Rule's delivery requirement
• ✓Actual delivery or mailing within 3 business days is required

For a purchase money mortgage, the creditor discloses the Sale Price of the property. If personal property is included in the sale price, that full price is used without reduction for the value of the personal property. For a transaction without a seller (such as a refinance or new construction), the creditor instead discloses the Appraised Value or Estimated Value of the property.

• ✓Purchase transactions disclose the Sale Price of the property
• ✓Transactions without a seller disclose the Appraised Value or Estimated Value
• ✓Property must include the zip code; if no address is available, a description of the location is used

The Loan Estimate discloses the consumer's intended use of the loan using one of four purposes: Purchase (financing the property's acquisition), Refinance (refinancing an existing obligation secured by the property, even if the creditor is not the original holder/servicer), Construction (financing initial construction of a dwelling on the property), or Home Equity Loan (any other purpose).

• ✓Under federal law, loan Purpose is disclosed as Purchase, Refinance, Construction, or Home Equity Loan
• ✓Refinance applies even if the creditor is not the holder or servicer of the original obligation
• ✓Home Equity Loan is the catch-all category disclosed for any other purpose

The Loan Estimate discloses the Loan Type as one of the following: Conventional if the loan is not guaranteed or insured by a federal or state government agency; FHA if insured by the Federal Housing Administration; VA if guaranteed by the U.S. Department of Veterans Affairs; or Other (with a brief description) if insured or guaranteed by another federal or state agency.

• ✓Conventional means the loan is not government insured or guaranteed
• ✓FHA means insured by the Federal Housing Administration; VA means guaranteed by the Dept. of Veterans Affairs
• ✓'Other' with a brief description is used for loans backed by other federal or state agencies

The Loan Estimate indicates whether the interest rate is locked (Yes or No). If the rate is locked at delivery, the date and time (including time zone) when the lock period ends must be disclosed. On every Loan Estimate, the date and time (including time zone) at which the estimated closing costs expire must be disclosed.

• ✓The Loan Estimate discloses whether the interest rate is locked (Yes/No)
• ✓If locked, the date and time (with time zone) the lock expires must be disclosed
• ✓Every Loan Estimate must disclose the date and time the estimated closing costs expire

If the initial interest rate is not known at consummation (as with an adjustable-rate loan), the creditor discloses the fully-indexed rate — the interest rate calculated using the index value and margin at the time of consummation. The initial principal and interest payment is calculated using that same fully-indexed rate.

• ✓When the initial rate is not known, the fully-indexed rate (index + margin at consummation) is disclosed
• ✓The initial principal & interest payment is calculated using the fully-indexed rate
• ✓This applies to adjustable-rate loans where the initial rate isn't yet fixed

When certain triggering events may occur during the life of the loan, additional columns must be added to show payment amounts after the event. This alerts borrowers to future payment changes on adjustable-rate, interest-only, negative amortization, and balloon loans.

• ✓Triggering events include a change in Principal & Interest (e.g., adjustable-rate loans), a scheduled balloon payment, and automatic termination of mortgage insurance
• ✓The Projected Payments table may contain a maximum of four columns
• ✓A balloon payment scheduled as a final payment always requires its own column with the heading 'Final Payment'

For each column, the Estimated Total Monthly Payment is disclosed as the sum of Principal & Interest, Mortgage Insurance, and Estimated Escrow. This gives the borrower the full monthly housing payment estimate.

• ✓Estimated Total Monthly Payment = Principal & Interest + Mortgage Insurance + Estimated Escrow (§ 1026.37(c)(2)(iv))
• ✓If mortgage insurance is not required, disclose '0'; if no escrow account will be established, disclose '0' for Estimated Escrow

Page 1 of the Loan Estimate summarizes the Estimated Closing Costs and the Estimated Cash to Close. Estimated Closing Costs are the Total Closing Costs from page 2, itemized to show total Loan Costs, total Other Costs, and Lender Credits.

• ✓Estimated Closing Costs include Total Loan Costs plus Total Other Costs minus Lender Credits (§ 1026.37(d)(1)(i))
• ✓Estimated Cash to Close on page 1 matches the amount from the Calculating Cash to Close table on page 2 (§ 1026.37(d)(1)(ii))
• ✓For transactions without a seller, an Alternative Costs at Closing table with 'From/To Borrower' checkboxes may be used

Origination Charges are items the consumer pays to each creditor and loan originator for originating and extending credit. Points paid to reduce the interest rate are shown as both a percentage of the loan amount and a dollar amount.

• ✓Points are disclosed as a percentage of the loan amount and a dollar amount; if no points are charged, leave both blank (§ 1026.37(f)(1)(i))
• ✓Compensation paid indirectly to a loan originator through the interest rate is NOT disclosed as an Origination Charge
• ✓Up to 13 items may be itemized; excess items over 12 are shown as 'Additional Charges'

Services You Cannot Shop For are provided by third parties chosen by the creditor; Services You Can Shop For allow the consumer to select the provider. A creditor permits shopping when the consumer may select the provider subject to reasonable requirements.

• ✓Services You Cannot Shop For (e.g., appraisal, credit report, flood determination, lender's title insurance) — disclose no more than 13, excess shown as 'Additional Charges' with no addendum permitted
• ✓Services You Can Shop For (e.g., pest inspection, survey, title closing agent) — disclose no more than 14, and an addendum to the Loan Estimate MAY be used for additional items
• ✓Title-related items must begin with 'Title –'; lender's title insurance premium is disclosed without any simultaneous-purchase discount

Other Costs are disclosed under four subtotaled subheadings, summing to Total Other Costs. These costs are largely established by government action or borrower obligations independent of the creditor.

• ✓The four subheadings are Taxes and Other Government Fees, Prepaids, Initial Escrow Payment at Closing, and Other
• ✓Total Other Costs = sum of the four subtotals (§ 1026.37(g)(5))
• ✓No addendum may be used for Other Costs; excess items are shown as 'Additional Charges' on the last line of the subheading

Under Taxes and Other Government Fees, Recording Fees and Other Taxes are disclosed first and Transfer Taxes second. The distinction matters because they are calculated differently.

• ✓Recording Fees and Other Taxes are government fees to record/index documents and do NOT depend on sale price or loan amount
• ✓Transfer Taxes are based on the Loan Amount or Sale Price of the Property; the name used under state/local law is not determinative
• ✓Only Transfer Taxes paid by the consumer are disclosed on the Loan Estimate; taxes paid by the seller are not shown

Under federal law (TILA/RESPA, CFPB), Lender Credits are payments from the creditor to the consumer that do not pay for a particular fee and are shown as a negative number. In 'no cost' loans, the credit or rebate offsetting closing costs is disclosed as Lender Credits, and must be sufficient to cover items the creditor represented would not be paid by the consumer.

• ✓Lender Credits are disclosed as a negative number (Comment 37(g)(6)(ii)-1)
• ✓In 'no cost' loans, the creditor's credit or rebate must be disclosed as Lender Credits and be sufficient to cover represented non-charged items (Comment 37(g)(6)(ii)-2)

Under federal law (TILA/RESPA, CFPB), the AIR Table is disclosed only when the loan's interest rate may increase after consummation; it is not shown if the rate will not increase. It discloses Index + Margin, Initial Interest Rate, Minimum/Maximum Interest Rate, Change Frequency, and Limits on Interest Rate Changes.

• ✓The AIR Table is disclosed only when the interest rate may increase after consummation (§ 1026.37(j))
• ✓The margin is disclosed as a percentage (e.g., adding 4.25 to LIBOR is shown as 4.25%) (Comment 37(j)(1)-1)

Under federal law (TILA/RESPA, CFPB), the TIP equals the total interest paid over the loan term divided by the loan amount, expressed as a percentage. Example: a $100,000 loan with $50,000 total interest has a TIP of 50%.

• ✓TIP = (total interest over loan term ÷ loan amount) × 100
• ✓In 5 Years discloses amounts paid through the end of the 60th month after the first payment due date (§ 1026.37(l)(1))

Under federal law (TILA/RESPA, CFPB), the Loan Estimate's Other Considerations table discloses Appraisal, Assumption (whether a later purchaser may assume the loan), optional Homeowner's Insurance statement, Late Payment charges, Refinance nature, Servicing intent, and (for refinances) Liability After Foreclosure protections.

• ✓The table discloses Appraisal, Assumption, Homeowner's Insurance, Late Payment, Refinance, and Servicing information (§ 1026.37(m))
• ✓A statement about state-law Liability After Foreclosure protections is included for refinance transactions (§ 1026.37(m))

Under federal law, the Loan Estimate is a three-page form with a prescribed number of lines. Creditors cannot alter the line structure.

• ✓A creditor cannot change the number of lines for costs; excess charges are aggregated and described as 'additional charges'
• ✓Page 1 shows general information, Loan Terms, Projected Payments, and Costs at Closing; page 3 shows Contact Information, Comparisons, and Other Considerations
• ✓Services disclosed as 'additional charges' in the 'services you can shop for' section may be itemized on an addendum

Under federal law (Regulation Z § 1026.19(g)(1)(i), CFPB), if the creditor denies the consumer's application or the consumer withdraws the application before the end of the three-business-day period, the creditor need not provide the special information booklet.

• ✓No booklet required if the application is denied or withdrawn within the 3-business-day period
• ✓Applies to both creditor denial and consumer withdrawal (Comment 19(g)(1)(i)-3)

Under federal law (TILA/RESPA), figures on the Loan Estimate must be made in good faith using the best information reasonably available. Good faith is measured by comparing the estimated charge on the Loan Estimate with the actual charge on the Closing Disclosure. Generally, if the amount charged exceeds the estimate, it is not in good faith — regardless of a later-discovered error.

• ✓Good faith is determined by comparing the Loan Estimate figure to the actual charge on the Closing Disclosure
• ✓Charging more than the estimate is generally not in good faith, even due to a technical error or miscalculation
• ✓Charging the consumer less than disclosed is always in good faith, without regard to tolerances

Under federal law (TILA/RESPA), certain charges may increase without any tolerance limit if the original estimate was based on the best information reasonably available: prepaid interest, property insurance premiums, amounts placed into escrow/impound/reserve accounts, services the consumer shops for where the consumer chooses a provider NOT on the creditor's written list, and property taxes / other third-party charges for services not required by the creditor.

• ✓No-tolerance charges: prepaid interest, property insurance premiums, and escrow/impound/reserve amounts
• ✓Charges for services where the consumer shopped and chose a provider NOT on the creditor's list have no tolerance limit
• ✓Property taxes and third-party charges for non-required services have no tolerance limit if based on best info reasonably available

Under federal law (TILA/RESPA), recording fees and charges for third-party services (not paid to the creditor/affiliate, and where the consumer shopped and chose a provider from the creditor's written list) are grouped and subject to a 10% cumulative tolerance. The total of these charges may not exceed the total disclosed on the Loan Estimate by more than 10%, even if an individual charge rises more than 10%.

• ✓Recording fees and qualifying third-party service charges are subject to a 10% cumulative tolerance
• ✓The aggregate (sum) of these charges may not exceed the estimated sum by more than 10%
• ✓An individual charge may rise more than 10% as long as the category total stays within 10%

Under federal law (TILA/RESPA), zero-tolerance charges (which cannot exceed the Loan Estimate absent a changed circumstance) include: fees paid to the creditor, mortgage broker, or their affiliate not otherwise exempt; fees to an unaffiliated third party when the creditor did NOT permit shopping; and transfer taxes.

• ✓Zero-tolerance charges include fees paid to the creditor, broker, or affiliate, and transfer taxes
• ✓Fees to an unaffiliated third party where the consumer was NOT allowed to shop are zero tolerance
• ✓Zero-tolerance charges may only increase with a valid changed circumstance or triggering event

Under federal law (TILA/RESPA, CFPB TRID Rule), if the amounts a consumer pays at closing exceed the amounts disclosed on the Loan Estimate by more than the applicable tolerance threshold, the creditor must provide a corrected Closing Disclosure and cure the violation by refunding the excess to the consumer no later than 60 calendar days after consummation. The refund does not have to be a cash refund.

• ✓Creditor must provide a corrected Closing Disclosure and a cure no later than 60 calendar days after consummation
• ✓Zero-tolerance charges: any amount charged beyond the disclosed amount must be reimbursed to the consumer
• ✓10% cumulative tolerance charges: the amount the total sum exceeds the disclosed sum by more than 10% must be reimbursed
• ✓Cures may be provided by direct refund, principal reduction, or lender credits (specific or general)

Under federal law (TILA/RESPA, CFPB), creditors may use a revised Loan Estimate to reset tolerances only in six specific circumstances: (1) changed circumstances causing an estimated charge to increase beyond permitted limits; (2) changed circumstances affecting creditworthiness or property value making the consumer ineligible; (3) consumer-requested changes to credit terms or settlement that increase a charge; (4) rate lock after the LE was provided; (5) consumer indicating intent to proceed more than 10 business days after the LE was provided; and (6) new construction loans where settlement is delayed more than 60 days (if the LE clearly stated this).

• ✓Only six specific triggering events permit resetting tolerances with a revised Loan Estimate
• ✓Informational revisions cannot be used for good faith unless a resetting circumstance is also present
• ✓Good faith may be based on increased charges only to the extent actually justified by the reason for the revision
• ✓Creditors must retain records demonstrating compliance with § 1026.19(e)

Under federal law (TILA/RESPA), if the consumer is permitted to shop for a settlement service, the creditor must provide a written list of service providers (separate from the Loan Estimate) within 3 business days of application. It must identify at least one provider per service and state the consumer may choose a different provider.

• ✓A written list of service providers must be provided within 3 business days of application when the consumer may shop
• ✓The list must identify at least one available provider per service and state the consumer may choose another
• ✓A consumer is not considered able to shop if the creditor limits choices to its own selected list

Under federal law (TILA/RESPA), if the creditor fails to provide the written list but the consumer was permitted to shop, the charges are subject to the 10% cumulative tolerance — unless paid to the creditor or an affiliate, in which case they fall under zero tolerance. Errors/omissions preventing shopping push charges to zero tolerance.

• ✓Failure to provide the written list (when shopping was allowed) keeps charges at 10% tolerance, unless paid to creditor/affiliate
• ✓Charges paid to creditor or affiliate move to zero tolerance
• ✓If an error or omission prevents shopping, the charge becomes subject to zero tolerance

Under federal law (TILA/RESPA), lender credits (general or specific) may always increase but may only decrease with an accompanying changed circumstance. Good faith compares the total lender credits actually provided at closing to the amount disclosed on the Loan Estimate; providing less than disclosed is a zero-tolerance violation.

• ✓Lender credits may always increase but may only decrease with a changed circumstance/triggering event
• ✓Providing less lender credit than disclosed is a zero-tolerance violation
• ✓General credits are generalized payments; specific credits are attributed to a particular fee

Under federal law (TILA/RESPA, CFPB), a creditor generally may revise a Loan Estimate any time before providing the Closing Disclosure, either to reset tolerances for good-faith purposes or to update information. The consumer must receive the revised Loan Estimate no later than four business days prior to consummation. All revised disclosures must be based on the best information reasonably available.

• ✓A creditor may revise a Loan Estimate at any time before the Closing Disclosure is provided
• ✓The consumer must receive the revised Loan Estimate no later than four business days prior to consummation
• ✓All revised disclosures must be based on the best information reasonably available
• ✓Creditors are generally bound by the amounts in the original Loan Estimate and may only reset tolerances in specific circumstances

Under federal law (TILA/RESPA, CFPB), a 'changed circumstance' for resetting tolerances is: an extraordinary event beyond the control of any party or other unexpected event specific to the consumer/transaction; information specific to the consumer/transaction that the creditor relied on that was inaccurate or changed; or new information specific to the consumer/transaction the creditor did not rely on when providing the disclosures.

• ✓Includes extraordinary events beyond any party's control (e.g., natural disaster)
• ✓Includes inaccurate or changed information the creditor relied upon
• ✓Includes new information the creditor did not previously rely on
• ✓Creditors are presumed to have collected the six application items and cannot later claim receiving them is a changed circumstance

Under federal law (TILA/RESPA, CFPB), a changed circumstance affects settlement charges when it causes an estimated charge to increase beyond the applicable tolerance, or for 10% cumulative tolerance charges, causes the sum to increase by more than 10%. Examples include natural disasters damaging the property, a title insurer going out of business, or new information such as a boundary dispute.

• ✓Must cause an increase beyond the applicable tolerance to qualify
• ✓For 10% cumulative charges, the sum must increase by more than 10%
• ✓Examples: natural disaster, title insurer failure, boundary claim by a neighbor

Under federal law (TILA/RESPA, CFPB), a creditor may use a revised Loan Estimate to reset tolerances when a consumer requests changes to credit terms or settlement that increase an estimated charge. However, redisclosure that reflects decreases or increases within tolerance does not reset tolerances; the creditor must continue measuring against the original Loan Estimate.

• ✓Consumer-requested changes that increase a charge allow resetting of tolerances
• ✓Redisclosure alone does not reset tolerances if the change is within tolerance
• ✓Creditors must continue to measure tolerances against the original Loan Estimate in those cases

Under federal law (TILA/RESPA, CFPB), if the interest rate was not locked when the Loan Estimate was provided, locking the rate may change the rate, points, lender credits, and other rate-dependent charges. The creditor must provide a revised Loan Estimate no later than three business days after the rate is locked. This requirement applies only once — no new revised LE is needed for later rate-lock extensions if no other charges change.

• ✓Revised Loan Estimate required no later than three business days after the rate is locked
• ✓Must reflect revised rate, points, lender credits, other rate-dependent charges, and rate expiration date
• ✓The revised LE requirement applies only once, not for subsequent rate-lock extensions

Under federal law (TILA/RESPA, CFPB), if the consumer indicates intent to proceed more than 10 business days after the Loan Estimate was delivered or mailed, the creditor may issue a revised Loan Estimate with no justification other than the lapse of 10 business days. If the creditor voluntarily extends the expiration date, that extended date controls.

• ✓10 business days is the standard expiration period for a Loan Estimate
• ✓No other justification is needed to revise charges after 10 business days lapse
• ✓A voluntarily extended expiration date (oral or written) becomes the controlling expiration date

Under federal law (TILA/RESPA, CFPB), two different definitions of 'business day' apply. For providing a revised Loan Estimate within three business days of a triggering event, the general (standard) definition applies. For the four-business-day period before consummation, the precise definition applies: all calendar days except Sundays and specified federal legal public holidays.

• ✓General/standard business-day definition applies to the three-business-day redisclosure window
• ✓Precise definition (all calendar days except Sundays and federal holidays) applies to the four-business-day pre-consummation period

Under federal law (TILA/RESPA, CFPB), like a revised Loan Estimate, a creditor may use a Closing Disclosure or corrected Closing Disclosure to reset tolerances when a changed circumstance or other triggering event occurs.

• ✓A Closing Disclosure or corrected Closing Disclosure may reset tolerances
• ✓Resetting requires a changed circumstance or other triggering event

Under federal law (TILA-RESPA, CFPB), the Total of Payments disclosed on the Closing Disclosure is considered accurate if understated by no more than $100, or if it is greater than the amount required to be disclosed. Separate rescission tolerances apply in certain refinance/foreclosure contexts.

• ✓Total of Payments is accurate if understated by no more than $100 (§ 1026.38(o)(1))
• ✓Total of Payments is accurate if it is greater than the amount required to be disclosed
• ✓Regulation Z's finance charge tolerance also extends to the Total of Payments when the error stems from a finance charge misdisclosure

Under federal law (TILA/RESPA, CFPB), for loans requiring a Loan Estimate that proceed to closing, the creditor must provide a Closing Disclosure reflecting the actual terms and costs of the transaction. It integrates and replaces the HUD-1 and final TIL disclosure. The consumer must receive it no later than three business days before consummation. If actual terms change before consummation, a corrected disclosure is required, which may trigger a new three-business-day waiting period.

• ✓The Closing Disclosure replaces the HUD-1 and final TIL disclosure
• ✓Consumer must receive it no later than three business days before consummation
• ✓It must contain the actual terms and costs of the transaction in writing per § 1026.38
• ✓A corrected disclosure may trigger an additional three-business-day waiting period

Under federal law (TILA/RESPA, CFPB), consummation is a legally distinct event from closing or settlement, though they often occur together. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan — not when obligated to a seller. When this occurs depends on applicable state law, and delivery of the Closing Disclosure must occur at least three business days before consummation.

• ✓Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan
• ✓Consummation is legally distinct from closing/settlement even if they occur at the same time
• ✓When consummation occurs is determined by applicable state law
• ✓The Closing Disclosure must be delivered at least three business days before consummation

Under federal law (TILA-RESPA, CFPB), the creditor is responsible for ensuring the consumer receives the Closing Disclosure no later than three business days before consummation. The creditor is responsible for the content, delivery, and timing of the disclosure.

• ✓Consumer must receive the Closing Disclosure at least three business days before consummation (§ 1026.19(f)(1)(ii)(A))
• ✓The creditor is legally responsible for ensuring compliance with content, delivery, and timing requirements (§§ 1026.19(f) and 1026.38)
• ✓A creditor providing estimated terms must act in good faith and with due diligence

Under federal law (TILA-RESPA, CFPB), if delivered in person, the Closing Disclosure is received the day it is provided. If mailed or delivered electronically, the consumer is presumed to receive it three business days after it is sent, unless the creditor has evidence of earlier receipt.

• ✓In-person delivery = received the same day (§ 1026.19(f)(1)(iii))
• ✓Mailed or electronic delivery = presumed received three business days after sending
• ✓Creditor may rely on evidence of earlier actual receipt

Under federal law (TILA-RESPA, CFPB), consumers must receive the Closing Disclosure at least three business days before consummation, which is when the consumer becomes contractually obligated (not necessarily the closing/settlement date). For the Closing Disclosure, business day means all calendar days except Sundays and federal legal holidays.

• ✓Consummation = when the consumer becomes contractually obligated on the credit transaction (§ 1026.2(a)(13))
• ✓Business day (Closing Disclosure) = all calendar days except Sundays and federal legal holidays (§ 1026.2(a)(6))
• ✓For timeshare transactions, the Closing Disclosure must be received no later than consummation

Under federal law (TILA-RESPA, CFPB), a consumer may waive or modify the three-business-day waiting period only for a bona fide personal financial emergency, after receiving the Closing Disclosure, by giving the creditor a dated, signed written statement describing the emergency. Creditors cannot provide a pre-printed waiver form.

• ✓Waiver allowed only for a bona fide personal financial emergency (§ 1026.19(f)(1)(iv))
• ✓Consumer must first receive the Closing Disclosure and provide a dated written statement signed by all primarily liable consumers
• ✓Creditor is prohibited from providing a pre-printed waiver form

Under federal law (TILA/RESPA, implemented by the CFPB's TRID rule under Regulation Z), the Closing Disclosure is a statement of final loan terms and closing costs. It is a five-page form given to the borrower and it must be compared against the earlier Loan Estimate. Its content parallels the Loan Estimate but is updated to reflect the actual terms of the legal obligation at consummation.

• ✓The Closing Disclosure is a federally required form under TILA/RESPA (TRID) enforced by the CFPB.
• ✓It is a statement of final loan terms and closing costs and should be compared with the Loan Estimate.
• ✓Amounts and terms are updated to reflect the legal obligation at consummation.

Under federal law (§ 1026.38(b)), the Loan Terms table discloses the Loan Amount, Interest Rate, and Monthly Principal & Interest, and answers whether these amounts can increase after closing. It also discloses whether the loan has a Prepayment Penalty or Balloon Payment. It mirrors the Loan Estimate's Loan Terms table, updated to the final legal obligation.

• ✓Loan Terms table shows Loan Amount, Interest Rate, and Monthly Principal & Interest.
• ✓It discloses whether these amounts can increase after closing.
• ✓It discloses whether the loan has a Prepayment Penalty or Balloon Payment.

• A. The seller is entitled to keep only the earnest money deposit regardless of actual losses.
• B. The seller is entitled to the difference between the contract price and the fair market value of the property at the time of breach, plus any incidental damages. ✓ Answer
• C. The seller is entitled to the full contract price because specific performance is available to sellers as a matter of right.
• D. The seller is entitled to no damages because commercial real estate contracts are not enforceable by sellers.

• A. The buyer may introduce the oral statements because they were made by a licensed agent acting within the scope of authority.
• B. The buyer may introduce the oral statements to clarify an ambiguous term in the written contract.
• C. The merger clause, combined with the parol evidence rule, bars the buyer from introducing prior oral representations to add terms to the fully integrated written contract. ✓ Answer
• D. The merger clause is unenforceable because sellers cannot disclaim their agents' representations.

• A. Accord and satisfaction
• B. Anticipatory repudiation ✓ Answer
• C. Equitable conversion
• D. Promissory estoppel

• A. The oral modification is unenforceable because any modification to a contract for the sale of real estate must be in writing to be enforceable. ✓ Answer
• B. The oral modification is enforceable because it was agreed upon by both parties after the original contract was signed.
• C. The oral modification is unenforceable only if the painting cost exceeds $500.
• D. The oral modification is enforceable because it relates to personal property, not the real estate itself.

• A. Implied authority, because accepting deposits is a customary part of a listing broker's role
• B. Apparent authority, because the buyer could reasonably believe the agent had this power
• C. Express authority, because the seller explicitly granted these specific powers in writing ✓ Answer
• D. Emergency authority, because the seller was unavailable and the agent acted to preserve the principal's interests

• A. Honestly relay the buyer's strong motivation because good faith negotiation requires transparency
• B. Tell the listing agent the buyer is 'somewhat interested' to protect the buyer's negotiating position without making a false statement
• C. Decline to provide information about the buyer's motivation, as it is confidential information protected by the duty of loyalty ✓ Answer
• D. Refer the listing agent to the buyer directly and withdraw from the conversation